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Every year, billions of dollars of money goes unclaimed in Michigan. In fact, as of early 2025, there was more than $2 billion worth of unclaimed money in the coffers of the state.

A sizable portion of this total, $189.6 million in fact, is held in more than 17.6 million properties, each worth $50 or less.

This illustrates the fact that residents of Michigan are letting their rightfully-owned money be held by the state each year. Luckily, there is an easy way to get whatever money is yours.

In this article, we’ll explain what unclaimed money in Michigan is, and how you can find out if you have any — and the steps to take to claim it.

What is Unclaimed Money in Michigan?

Unclaimed money is essentially any financial asset that has been abandoned or forgotten. It can include things such as refund checks, insurance payouts, unused gift card balances or old bank accounts.

When these funds go unclaimed, the business that holds them has to legally try to contact the owner to give it to them. There are specific rules that require companies to report and transfer financial assets after a period of inactivity.

Once they’re unable to reach that person for a certain period of time, though, they have to turn the assets over to the state.

At this point, the State of Michigan is responsible for holding onto those financial assets temporarily until the rightful owner comes forward to claim them.

How to Search for Unclaimed Money in Michigan

Like many other states, Michigan’s Department of Treasury has an easy-to-use online system that allows you to search for any unclaimed money that the state may owe to you.

By visiting the state’s site, you can easily search your name to see if the state is holding any unclaimed money on your behalf.

Once you’ve arrived at the site, you only need your full name to conduct a search. Additional details that you provide — such as the city and/or Zip code of the place you reside — can help to narrow down the results, especially if you have a common name.

Keep in mind that if you have lived in multiple locations in Michigan, you may have unclaimed funds associated with more than one address..

The state’s unclaimed property site also allows you to look up funds that might be owed to deceased relatives. Of course, you’ll need to have the proper documentation to move forward and claim them, if you find any.

How to File a Claim for Unclaimed Money

After you perform the search on the state’s website, it will produce any results of unclaimed money that are associated with your name. You’ll first want to verify that the results are actually meant for you, and not someone else who shares your name.

If you believe that the funds are indeed yours, you can move onto the next step in the process. This involves going through a short verification process that will ensure that you are the rightful owner of the unclaimed property.

You may need to provide information such as a Social Security number, driver’s license number or other form of acceptable government ID. Depending on the type of property you are claiming, you may need to provide proof of address or a document that shows your past affiliation with the business that held the funds.

The processing times vary once you’ve completed the verification, but most claims are resolved within a few weeks.

How Michigan Protects Your Unclaimed Money

A common question people have is how does the state of Michigan protect your unclaimed money while they hold it? Per state law, the Department of Treasury has to keep your funds safe until either you or your heirs file a proper claim.

The state also has to hold the unclaimed assets indefinitely. In other words, they never “expire;” you or your rightful heirs can always claim them.

By putting a proper verification process in place, the state ensures that no one else can falsely or fraudulently claim your money.

After you’ve completed the process, you can get online updates about where your claim stands on the state’s website.

Tips to Prevent Your Money from Becoming Unclaimed Again

While it’s great that you can regain possession of your financial assets, it’s best to ensure that the state doesn’t come into possession of them in the first place. By following some simple habits, you can make sure that your financial assets are always in your contract.

First, make sure that your contact information is always up to date. Many unclaimed property cases occur because the business that holds them simply is unable to reach you.

You should regularly check-in on old financial accounts and insurance policies so they don’t become inactive or abandoned.

It’s also a good idea to conduct a quick annual search of the state’s unclaimed funds site so you can catch newly-reported funds quickly.

When You Might Need Legal Help

The state’s unclaimed funds process is simple. In some cases, though, you may need additional support from an experienced Michigan lawyer.

For example, large claims or those that involve estates can get quite complicated. These often require providing legal documents to the state that prove your authority over the unclaimed funds.

An attorney can also help challenge any incorrect denial or clarify ownership issues over the financial assets. By get the property legal support, you’ll be ensuring that your claims are processed quickly and properly.

Final Thoughts: Unclaimed Money in Michigan is Easy to Recover

Millions of cases of unclaimed funds are held by the state of Michigan. Luckily, a simple online search and providing basic documents and information is all that most residents need to reclaim forgotten funds.

Most people will be able to use the state of Michigan’s official search tool to find their unclaimed funds and claim them fast. It’s a completely free tool to use and is simple to understand.

You can speed up the process and ensure proper and prompt delivery of your funds by preparing ahead and gathering the necessary documents. Then, by following small habits, you can ensure your money never gets “lost” again.

If you need assistance with more complicated unclaimed funds cases, enlist the help of the lawyers at Babi Legal Group. We have years of experience helping residents prove their authority over unclaimed funds in Michigan and can help you do the same.

Contact us today to learn more.

The Small Business Administration (SBA) offers a wealth of information, resources and support services to small business owners throughout the country. One popular program that they offer is a loan guarantee, which gives borrowers favorable loan terms and an easier chance to qualify for much-needed financial assistance compared to going directly to private lenders.

While these programs are meant to help small business owners, they are still loans that need to be repaid. If borrowers have trouble repaying the loans, they can face potentially serious consequences.

For instance, defaulting on an SBA loan can lead to foreclosure and seizure of certain assets — both business and personal if the borrower provided a personal guarantee.

Below, we’ll describe the SBA judgment process in further detail.

Introduction to SBA Loans

The SBA offers two main types of loan programs. 

The first is a guarantee program in which the federal agency works with private lenders and insures up to 85% of the loan. This guarantee allows the private lenders to offer small business owners favorable loan terms so they can get the money they need to fund different aspects of their business operations.

The other type of loans the SBA offers is a direct loan program, such as the Economic Injury Disaster Loan (EIDL), which became very popular during the COVID-19 pandemic. These loans were provided directly to borrowers from the SBA, and were meant to provide assistance for small business owners who were located in a declared disaster zone and suffered economic injury as a result of a disaster — in this case, the pandemic.

All SBA loans, regardless of the type, are an essential part of the small business financing process. They help new companies set up and get established, and they also help existing companies grow. 

And, as mentioned, SBA loans can serve as a lifeline to small businesses that are facing significant financial losses and challenges due to life-changing events.

Defaulting on SBA Loans

While SBA loans have different eligibility requirements and loan terms than those obtained directly through private lenders without the federal government’s support, a vast majority of these loans still need to be repaid.

For example, even the EIDL loans had to be repaid by borrowers, which is different from the Paycheck Protection Program (PPP), which offered borrowers the opportunity to convert their loans to forgivable grants if they met certain requirements.

Default on an SBA loan typically occurs after a borrower has missed payments by 120 days. Borrowers who are experiencing operational setbacks, cash flow issues or other financial challenges can pursue options for assistance, including loan restructuring and payment deferments, or even an Offer in Compromise (OIC) to help them improve cash flow and manage payments.

Ultimately, though, if the borrower is unable to meet their repayment obligations and/or come to an agreement on alternative assistance, the lender has the right to sue the borrower to recover the outstanding balance. 

During that process, the SBA can seize any collateral that was used to secure the loan, such as business equipment or inventory. That collateral is then typically sold, with the proceeds being used to repay the outstanding balance.

Borrowers who are dealing with a potential SBA loan default may be able to gain some relief through bankruptcy, which can protect them from litigation and wage garnishment.

All of this goes to show just how important effective management of defaulted SBA loans is. To do it properly, a borrower must be proactive in their communication with the lender, negotiate properly and conduct thorough financial planning.

Foreclosure and Asset Seizure

Foreclosure on an SBA loan could result in the business losing assets, which can be used to repay the outstanding amount of the loan. In many cases, this is business equipment, inventory and real estate the business owns.

In some cases, the SBA may also seize the personal assets of the borrower, such as their cars or home, if the borrower had to sign a personal guarantee to secure the loan or the SBA was able to pursue a lawsuit where it was successful in piercing the corporate veil to bypass the company entity and pursue the shareholder and/or member. 

Asset seizure is a serious thing, and it can have significant negative consequences not just for the business but for the borrower as well. This includes damage to the business’ credit score and reputation, a loss of assets and even damage to a borrower’s personal credit score and loss of assets.

All lenders that participate in these loan programs have to follow strict SBA guidelines when foreclosing on a property or seizing assets, and borrowers have the right to contest these processes.

In addition, borrowers may be able to take advantage of some SBA relief options, including forbearance, loan modifications or settlements, which are designed to help businesses avoid foreclosure and any possible asset seizure.

Role of SBA Loans in Business

SBA loans play a critical role in supporting small businesses throughout the country. They provide them with access to capital they might not be able to access otherwise, which they can use to support their growth and development.

There are many different loan programs the SBA provides, with the 7(a) and 504 loans being two of the most popular. Each program the SBA offers caters to different business goals and needs.

The great part about SBA loans is they can be used for a wide variety of purposes, including starting or expanding a business, refinancing debt, or purchasing inventory and equipment.

In addition to loan programs, the SBA provides support and resources for small businesses, including mentorship programs, training and counseling — both online and in-person.

Small business owners can make informed decisions about what financing options are available to them, and which loan program would best suit their needs, by understanding the role that the SBA plays.

Avoiding Default and Foreclosure

Borrowers who are having trouble meeting their repayment obligations need to prioritize communication with their lender if they want to avoid default and foreclosure. By communicating their needs directly to the lender as early as possible, borrowers might be able to negotiate to receive modified loan terms, including a new repayment schedule or even lower interest rates.

First and foremost, borrowers must understand all the conditions of terms of the loan. This will help them make the best decision possible as well as know what options are available to them.

To ensure the long-term success of the small business, borrowers also need to conduct effective financial planning and cash flow management.

Of course, there are times when financial troubles occur despite detailed and meticulous planning. That’s why the SBA offers resources and support to small business owners that can help them avoid default.

Liquidation and Repayment

If default on an SBA loan were to occur, the SBA and the lender could pursue liquidation, which is the sale of business assets to repay the outstanding loan amount. 

The federal agency could force borrowers to liquidate their assets, in certain circumstances, such as business inventory and/or equipment. Proceeds realized from those sales would then be used to satisfy the loan.

The SBA might offer some relief options, though, such as loan settlements or modifications. It also may be possible to negotiate a modified repayment plan directly with the lender to avoid default and liquidation.

Again, this is why communicating with the lender is so important for borrowers who are having trouble meeting their repayment obligations.

Conclusion and Next Steps

SBA loans are crucial for many small businesses, providing them with access to capital and financing they might otherwise have a hard time obtaining. If a borrower isn’t able to meet their repayment obligations, though, they face significant potential consequences, such as default, foreclosure and asset seizure.

That’s why it’s important to understand all of your options if you’re facing default on an SBA loan, such as bankruptcy. It can be a complicated process, though, which makes consulting with an experienced bankruptcy attorney so crucial.

At Babi Legal Group, our team has more than 15 years a decade of experience with bankruptcy, business, debt collection and debt settlement law, and can provide you with expert advice, guidance and consultation.

To learn more, please contact us today.

The Small Business Administration (SBA) provides Economic Injury Disaster Loans (EIDL) as a way to help support small businesses affected by disasters. While this loan program has been around for a while, it soared in popularity during the COVID-19 pandemic, when the federal government essentially made it available to all small businesses in the country.

These loans offer small businesses financial relief to help them recover from economic losses suffered as a result of disasters. To be eligible for EIDL loans, small businesses must be located in a declared disaster zone and also prove they suffered economic injury as a result of that disaster.

Small businesses are able to use the funds from the loans to cover operating costs, including utilities, rent and payroll.

Unlike some other popular SBA loan programs, EIDL loans must be repaid in full, though they often come with favorable loan terms. If you can’t repay the loan, you are at risk of professional and even personal liability.

In this article, we’ll discuss what happens in this case, as well as how to use Chapter 7 bankruptcy to stop SBA EIDL collections effectively.

Personal Liability and Guarantees

Whether a borrower is personally liable for EIDL loans depends on how much money they borrowed. 

Loans that were less than $25,000 are essentially unsecured loans, as they don’t require collateral or a personal guarantee. Loans that are between $25,000 and $199,999 typically require borrowers to put up collateral to secure the loan.

For EIDL loans that are $200,000 or more, the SBA typically requires collateral as well as a personal guarantee from any person who owns at least 20% of the business. What this personal guarantee does is put your personal assets and finances at risk should you fail to repay the loan, even if the business were to close.

As such, a personal guarantee increases a borrower’s responsibility for the SBA loan repayment, and it can even lead to collection efforts against your personal assets.

Before you can take action to protect yourself from collection, it’s important to understand what your personal liability is. This is an essential first step before filing for bankruptcy so you and your advisors can determine what the best course of action might be.

Secured EIDL Loans and Blanket Liens

As mentioned, any EIDL loan of $25,000 or more typically requires collateral to secure the loan. This can be any physical asset such as property, equipment or some other business asset that has value.

If a borrower is unable to repay an EIDL loan, the SBA has the option of issuing what’s known as a blanket lien. This gives the federal agency a security interest in all of the borrower’s assets, and could allow them to seize assets and sell them to repay the outstanding loan amount.

These blanket liens give lenders maximum protection against the money they lend, but don’t offer much protection at all to borrowers, who could be at risk of losing all of their pledged assets should they default on the loan.

This is why all borrowers need to carefully review the security agreement and fully understand all the terms of the loan, including blanket liens, before signing off on a loan.

Collection Efforts and Bankruptcy

Just like private lenders, the SBA has the power to pursue collection efforts against any borrowers who default on EIDL loans. This includes a potential foreclosure and seizure of business and potentially personal assets.

Borrowers who find themselves in this situation can file for Chapter 7 or Chapter 13 bankruptcy, though. This can stop collection efforts by the SBA, including wage garnishments and lawsuits, through what’s known as the automatic stay.

This procedural move gives borrowers temporary protection so that they can reorganize and/or liquidate their assets without creditors interfering in the process. 

Before taking any action, it’s best to consult with an experienced bankruptcy attorney to determine the best path forward for your specific circumstances, as bankruptcy takes more than a one-size-fits-all approach.

Dischargeability of Business Loans

Many SBA loans are dischargeable in bankruptcy, and that includes EIDL loans. That being said, there are exceptions that exist that you need to be aware of.

For instance, embezzlementnegligence, misrepresentation and fraud are all things that could stop an EIDL loan from being discharged. In rare cases, the SBA may also challenge the discharge of a loan.

To determine whether your SBA loan is dischargeable through bankruptcy, you should fully review all loan documents and terms. Since this can be challenging for non-experts, it’s always advisable to consult with a seasoned bankruptcy attorney, which will ensure you get the best outcome possible.

Alternatives to Bankruptcy for EIDL Loans

Of course, bankruptcy isn’t the only option if you are having trouble repaying your SBA loan. Some alternatives do exist, such as negotiating directly with the SBA or considering debt restructuring.

Another possible option is what’s known as an offer in compromise (OIC), which might be available if you’re unable to repay the full amount of the loan, however, this is not yet an option for EIDL loans issued by the SBA. 

Before determining what the best option for you is, it’s best to review your full financial picture and weigh all of your options. Consulting with a bankruptcy attorney and possibly even a financial advisor is a good idea, too, so you can get some outside, unbiased, expert advice on the matter.

Conclusion and Next Steps for SBA Loans

If you’re struggling with SBA loan debt, you need to investigate your options and seek professional advice so you can protect your personal assets as much as possible. Bankruptcy could provide a fresh start for you, but you need to carefully consider the consequences of doing so and any possible alternatives.

Consulting with an experienced and reputable bankruptcy attorney can help you navigate the complex bankruptcy process and ensure the best possible outcome for your specific circumstance.

At Babi Legal Group, we have more than 15 yearsa decade of experience in business, bankruptcy, debt collection and debt settlement law. We can review your case and help you get the outcome that is best for you, your family and your business.

To learn more, please contact us today.

The Small Business Administration (SBA) provides guidance and support to small businesses throughout the country in a number of ways. In addition to having advisers on hand to offer expert advice to small business owners, the federal agency also sponsors many different loan programs.

One of the biggest advantages of SBA loans is that they offer competitive interest rates and longer repayment terms than other types of loans available to small business owners.

These loans are originated and guaranteed by the federal government, with the SBA insuring as much as 85% of the loan balance through either local private lender partners or through direct SBA loans such as the Economic Injury Disaster Loan (EIDL).

Just like other loans, though, there are terms borrowers must abide by. This makes understanding all the conditions and terms of SBA loans crucial for borrowers so they can avoid default and potential tax debt.

Yet, ongoing economic changes could make it difficult for small business owners to repay their SBA loan debt, which could lead to potential default.

We’ll discuss this topic in more detail below, and outline how a lawyer can help small business owners avoid property seizure if they’re having trouble repaying their SBA loan.

Consequences of Default

Default happens whenever a borrower isn’t able to meet their repayment obligations on an SBA loan they took. If this were to happen, the small business owner could face severe consequences.

Once SBA loan default occurs, lenders can start debt collection efforts. This includes seizing any collateral that was used to secure the loan in the first place, such as equipment or real estate.

Generally speaking, the collect process will follow specific outlined protocols to recover the proceeds of the loan, as the lenders try to recoup any losses they might incur from the SBA loan not being paid back.

If you were to ignore a demand letter that the SBA sends during the default process, it can lead to your account being transferred to the U.S. Department of Treasury, which could result in a large potential tax liability and additional collection fees.

Understanding SBA Loan Default

So, what constitutes SBA loan default? In essence, borrowers who don’t abide by the terms of their loan or a modified loan, including missing payments repeatedly, are considered to be delinquent, which could eventually result in them being officially labeled as in default status.

Before you are actually transferred into default status, your loan will be considered delinquent once you miss payments. Your lender and/or the SBA will contact you to demand that you make repayments according to the terms of your loan.

In most cases, default of an SBA loan will occur after about three or four months of missed payments without any contact between you and the lender. During that time, the SBA will usually try to collect the outstanding debt via various means.

While the SBA guarantee that is placed on these loans will protect private lender partners from absorbing the full loss of defaulted SBA loans, borrowers still face significant financial penalties and hardship should they default.

Tax Implications

There are serious potential tax implications to defaulting on an SBA loan. This includes accumulating tax liability and debt for the business owners themselves.

For instance, if you default on an SBA loan, the IRS has the authority to withhold any tax refunds or government benefits to collect on the debt. They may also take direct legal action such as filing a lawsuit to recover the outstanding SBA loan debt.

That’s why it’s so important for business owners to consider this potential tax liability, as well as their own personal income tax situation, when faced with SBA loan default. Doing so will help you navigate what can be a very complicated process so you can avoid even deeper financial hardship.

Compromise Program

Depending on your specific situation, there may be options available to you to avoid default if you’re having trouble repaying your SBA loan. One such potential option is called the offers in compromise program, which can provide assistance to financially distressed taxpayers who can pay a reasonable portion of their outstanding tax debt.

This program may provide an alternative to bankruptcy and can help small business owners resolve outstanding tax debt so they can avoid more financial hardship.

The SBA typically only considers these offers in compromise (OIC) if borrowers meet certain qualifying criteria. Some states also have additional criteria that they will weigh when making a determination.

For example, in New York, the state will consider whether accepting an offer in compromise will be in the best interest of both the state and its taxpayers. In other words, even if you do meet the other criteria, your offer may not be accepted.

Offer in Compromise

The OIC program allows certain small business owners to settle their outstanding SBA loan debt for less than the total amount they owe. It requires the borrower to provide both proof of the financial hardship they are facing as well as their inability to repay the loan within a reasonable period of time.

One requirement of the OIC is that the business must close as well as go through asset liquidation to reduce their outstanding debt.

This is obviously a serious step to take, which is why having an experienced business attorney on your side is so beneficial. They can assist you with drafting and submitting an OIC to the SBA, and helping you gather all required supporting documentation including detailed financial information.

The OIC process can be very complex, but it is a potential solution if you’re facing significant financial challenges and potential default on an SBA loan.

SBA Loans and Default Prevention

As you can see, preventing default on an SBA loan is critical if you want your small business to survive. This is why taking early action is so crucial in helping you manage and/or avoid missed repayments.

There are many strategies available that can help you address repayment difficulties you may be having before a default would occur. This includes re-evaluating your business finances and reaching out directly to your lender to investigate other options.

By proactively managing the repayments of your SBA loan, you can protect your business credit. Communication with your lender is a key aspect of this process, as it can help you avoid defaulting and taking on additional tax debt.

Small business owners who want to prevent SBA loan default should explore any alternative repayment options and seek professional assistance from an experienced bankruptcy and/or financial adviser.

Conclusion and Next Steps

Facing potential SBA loan default can be very challenging for small business owners. Understanding the consequences and options of default is crucial to navigate the complex process successfully.

If you’re facing default, consider seeking professional assistance, such as the experienced lawyers at Babi Legal Group, to help you resolve your SBA loan debt and avoid property seizure.

The compromise program and an OIC are potential solutions, but you need to investigate them further with an expert. By understanding what options you might have and taking proactive steps, you can work to resolve SBA loan debt and avoid further financial challenges.

The attorneys at Babi Legal Group have more than 150 years of experience in business, debt collection and debt settlement law, and can help guide you when trying to avoid SBA loan default. 

For more information, contact us today.

The Small Business Administration (SBA) supports small businesses throughout the country in a number of ways. One example is the Economic Injury Disaster Loan (EIDL) program, which offers loans with advantageous terms to nonprofit organizations and small businesses affected by disasters.

The EIDL loans have not been around for a while, but became very popular during the COVID-19 pandemic, when the federal government said that every business throughout the country was located in a disaster zone.

The loan program was made available to qualifying small businesses, with the funds able to be used for working capital and other expenses.

With most repayment assistance programs now expired, borrowers who are having trouble repaying EIDL loans may have to consider filing bankruptcy to gain financial relief as the SBA is not offering any forgiveness. But, can bankruptcy discharge SBA EIDL loans?

We’ll examine that topic below.

COVID-19 and Business Challenges

EIDL loans provided critical financial support to small businesses that were affected by the COVID-19 pandemic. Most faced significant challenges seemingly overnight — from increased expenses to reduced revenue.

While the pandemic has ended, and so, too, have the financial relief programs that launched, some small businesses are still struggling to thrive.

The SBA and other government agencies make relief and support programs available frequently. So, make sure to understand the resources that are available to you to help your small business navigate the current economic environment.

Eligibility and Application

Small business owners who wanted to apply for an EIDL loan had to meet certain criteria. This includes being located in a disaster area, the definition of which was expanded to include the entire country during the pandemic.

Businesses also had to demonstrate that they suffered substantial economic injury as a result of the pandemic. 

To apply, the SBA required businesses to submit financial documents such as financial statements and tax returns during the application process, which could be done entirely online. The SBA then reviewed the documents to determine a business’ eligibility and how much they were willing to lend.

Personal Guarantee and Liability

Depending on the amount of the EIDL loan, the SBA could have required businesses to put up collateral to secure the loan. In fact, loans of $200,000 or more typically required business owners to put a personal guarantee along with the loan, which made them personally liable for repaying the loan.

Essentially, personal guarantees might put the business owner’s personal assets including their car or home at risk if the business defaults on repaying the loan. 

This is why it’s always important to carefully review all loan documents so you can understand your personal level of liability.

Loan Terms and Repayment

Many EIDL loans were unsecured loans, not requiring any collateral or personal guarantee. However, some required those extra steps if they were larger amounts.

One of the biggest advantages of these loans was that they had favorable loan terms. They had a fixed interest rate and a repayment term that could last as long as 30 years. 

Borrowers also didn’t have to start repaying the loan until one year after they received the money. Unlike loans from the Paycheck Protection Program (PPP), there was no option to have EIDCL loans forgiven.

Bankruptcy and Loan Dischargeability

Even after receiving EIDL loans, many small businesses continued to experience economic hardship. At one point, the SBA offered the Hardship Accommodation Plan (HAP), which provided temporary relief to these borrowers.

However, that expired in March 2025. Borrowers who are still having trouble repaying their loan might have options for loan modification, but bankruptcy could also be an option.

Like other debts, EIDL loans can be discharged in bankruptcy. The process it takes to do that and the outcome of it, though, depend on what type of bankruptcy you filed as well as your personal liability.

Personal liability for EIDL loans can be eliminated through either Chapter 7 or Chapter 13 banrkuptcy.  Chapter 7 bankruptcy can eliminate personal liability for EIDL loans, but there are certain eligibility requirements borrowers had to meet.

If you are considering bankruptcy to discharge EIDL loan debt, it’s best to consult with an experienced bankruptcy attorney to determine the best course forward. While bankruptcy can give you relief from some debt, you also should understand all the potential consequences of it as well as any alternative options you might have. 

Loan Settlement and Alternatives

In some cases, the SBA may have allowed borrowers to negotiate a settlement or modification of an EIDL loan. An experienced attorney or financial advisor can help you explore all available options to determine what the best course of action for you might be.

While bankruptcy might be the best choice, it’s still important to weigh all your options based on the potential benefits and consequences.

Business Closure and Loan Repayment

If a business closes as a result of financial difficulties, the owner still might be personally liable for the EIDL loan repayment, depending on the circumstances. If this is the case, the SBA could pursue collection actions, such as tax refund offsets and wage garnishment, to recover the outstanding balance.

Again, this speaks to the importance of fully understanding your obligations and repayment options you might have, even if your business no longer operates. Consider consulting with an experienced attorney or financial advisor to develop a plan for managing your debt and minimizing your personal liability.

Real Examples and Case Studies

Learning from what others have experienced can help you develop a strategy that works for you for minimizing liability and managing debt as a small business owner. Many people like you have gone through similar situations before, and they have much wisdom to share through these experiences.

Understanding practical implications and applications of EIDL loans as well as bankruptcy can help small business owners make informed decisions.

In addition, the SBA exists to help support small business owners. In addition to loan programs such as the PPP and EIDL, the agency provides guidance and resources to help them navigate through recovery.

Additional Resources

If you are having trouble repaying your EIDL loan, it’s best to reach out directly to the SBA for guidance on options available to you. There are local offices the agency runs, as well as a detailed website and a phone hotline where people can help.

It’s also a good idea to consult with financial advisors and experienced attorneys such as those at Babi Legal Group, who can provide you with expert guidance and support.

Our firm has more than 150 years of experience in business, bankruptcy, debt settlement and debt collection law. To learn more about how we can help you, please contact us today.